After market-wide correction last week, Cardano [ADA] sliced through a key support area. Since then the sellers have overhauled price action. The last couple of days have been interesting for the entire ecosystem. The successful hard fork of the highly anticipated Alonzo, often heralded as a critical change that would enable the Cardano network to contest with Ethereum, however, failed to translate into profits. FUDs and criticism made their way shortly thereafter.
The volatility in the market appeared to have picked up even as the crypto-asset was stuck in consolidation. Troubling signs emerged for the Cardano market and some analysts are worried that the correction could deepen.
Cardano [ADA] slipped by 1.73% over the past 24-hours and was trading at $2.38. At the time of writing, the crypto-asset registered a market cap of $76.64 billion and a 24-hour trading volume of $3.55 billion.
Cardano [ADA] Daily Price Chart:
The daily trading volume has been moderate and has significantly backed the uptrend. After the September 7 sell-off, the ADA price candles successfully bounced back from the 50 DMA [Pink] while the 100 [Blue] and 200 [Yellow] DMAs hovered lower. The upsloping 50 DMA appeared to be relentless and the candlesticks need to stay ahead of it in order to avoid setbacks. As depicted by the long wicks of September 11 and 12, every higher level faced serious profit-booking sessions as downside pressure intensified.
The red closing bars of Awesome Oscillator [AO] depicted that bearish momentum has engulfed the ADA market. The Klinger Oscillator [KO] also aligned with the bears while the daily Relative Strength Index [RSI] fall below the 50-median line further validated that sellers have an upper hand in ADA’s price structure.
According to the above charts, the technicals for Cardano does not look promising. Meanwhile, the resistance levels for the crypto-asset were at $2.6 and $2.9 while the support levels remained untested at $2.2, $1.9, and $1.7 respectively.